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Federal Bank Home Loan Interest Rate

Owning a house rather than living in a rented one will have its differences. You wouldn’t have to bank a cheque every month to the name of your house owner. You can make your own renovations and paint your house as you like. You can hang pictures wherever you want without calling your landlord to ask if it is ok to put a nail into the wall. And of course, you will always have a safe haven to come back to, regardless of wherever you are. Houses will cost a lot and you would need a lot of money in your pocket to buy one. Not everyone has a lot of money lying around in their banks. Availing a loan is a common thing to do when you are planning to buy a house.

Home loans can be availed through banks or financial institutions. They provide you with a loan and you would be expected to pay back in instalments along with an interest rate. Interest rates are charged by banks so that they can profit out of the services that they provide for you. Federal Bank provides you with home loans with interest rates that range from 8.75% to 9.15%.

Features of Federal Bank Home Loan

  • Enjoy speedy loan approval
  • Loan can be availed for 85% of the project cost
  • Repayment period is up to 30 years and can be done as easy EMIs
  • Security for the loan will be mortgage of land and the house being bought
  • Loan amount up to Rs. 1500 lakhs with a loan margin of 15 – 20%
  • Minimal paperwork
  • Resident and non-resident individuals including salaried, self-employed and businessmen can apply for a home loan
  • Processing fee of up to 0.5% is charged, where minimum is Rs. 3000 and maximum is Rs. 7500
  • The lowest EMI to be paid per lakh is Rs. 787

Federal Bank Home Loan Repayment options

Repayment of the loan is done in Equated Monthly Installments (EMI)

You can make use of any one of the ways to repay the loan:

  • Cheques
  • Standing instructions at your branch
  • FedNet – Internet Banking
  • Automated Payment through ECS
  • Mobile Banking

Federal Bank Home Loan Interest Rate

  • Range of spread over MCLR percentage per annum is 8.75% to 9.05% for salaried individuals. For non-salaried individuals it is 8.75% to 9.15%.
Home Loan TenorMCLR% per annum
Overnight MCLR8.7%
1-month MCLR8.8%
3 months MCLR8.95%
6 months MCLR9.05%
One-year MCLR9.15%

Eligibility Criteria of Federal Bank Home Loan

  • Housing loan interest rate depends upon the amount borrowed from Federal Bank. The higher the loan availed for, the lower will be the interest rate.
  • Salary of the applicant is one of the factors that will affect how much interest will have to be paid.
  • Type of loan opted for also will be taken into consideration as the rate of interest will change for special or popular loan product offers.
  • If the applicant is an existing customer, they will get the lowest home loan rates.

Documents Needed to Avail Home Loan at Federal Bank

KYC Documents

  • 2 passport size photos each of the applicant and the co-applicant
  • Identity proof and address proof of any of the following:
    • Passport
    • Voters ID
    • Driving License
    • PAN Card
    • Aadhaar Card
  • Age proof of any of the following:
    • Passport
    • Birth certificate
    • Driving License
    • SSLC or AISSE Certificate
  • Certified copy of Passport, Visa, Work Permit, ID Card (Applicable for NRI customers)

Income Documents – For Resident Salaried

  • Latest salary certificate or salary slip for the latest 3 months
  • Copies of IT returns or Form No.16 of 2 years
  • Latest 6 month’s bank account statements that can be taken as evidence for the salary credits.

Income Documents – For Resident Self Employed

  • Proof of business existence and business profile
  • Last 12 months bank account statements
  • IT returns for 2 years

Income Documents- For Non-Resident Salaried

Either option1 or option2 is required

Option 1

  • NRE account statement with any bank for last one year.
  • Salary certificate

Option 2

  • 2 years NRE account statement of customer

Income Documents- For Non-Resident Self Employed

Either option1 or option2 is required

Option 1

  • Proof of business existence and business profile
  • Last 12-month bank account statements
  • Balance sheet

Option 2

  • 2 years NRE account statement of customer

FAQs: Federal Bank Home Loan Interest Rate

1. What is the maximum loan amount that can be borrowed?

Loan amount of up to Rs. 1500 lakhs with a loan margin of 15-20% can be availed.

2. Is there a processing fee on Federal Bank Home Loan?

Processing fee of 0.5% is charged, where the minimum that is charged is Rs. 3000 and the maximum charged is Rs. 7500.

3. What is the lowest interest rate that is charged?

The lowest interest rate that is charged is 8.75% and goes up to 9.15%. The rate of interest charged depends on the salary of the applicant, the type of loan that is availed, the amount borrowed and if the applicant is an existing customer.

4. What are the repayment options given by Federal Bank?

Repayment of the loan is done in Equated Monthly Instalments (EMIs). They can be repaid through cheques, internet banking (FedNet), automated payment through ECS or mobile banking.

5. What is the repayment period for home loans that is given by Federal Bank?

Repayment period is 30 years and can be done as easy EMIs.

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